Question: Problem 1 4 - 6 4 ( LO 1 4 - 6 ) [ The following information applies to the questions displayed below. ] Rita
Problem LO
The following information applies to the questions displayed below.
Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home square feet where she meets with clients, prepares bills, and performs other workrelated tasks. Her business expenses, other than home office expenses, total $ The following homerelated expenses have been allocated to her home office under the actual expense method for calculating home office expenses.
Real property taxes$Interest on home mortgageOperating expenses of homeDepreciation
Also, assume that, not counting the sole proprietorship, Ritas AGI is $
Assume Ritas consulting business generated $ in gross income. Leave no answer blank. Enter zero if applicable.
a What is Ritas home office deduction for the current year?
b What would Ritas home office deduction be if her business generated $ of gross income instead of $Answer for both the actual expense method and the simplified method.
c Given the original facts, what is Ritas AGI for the year?
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